Canadian mutual insurance companies La Capitale Insurance and Financial Services and SSQ Insurance have agreed to merge. No financial terms were disclosed. After the merger closes, Jean St-Gelais will serve as chair of the board of directors of the newly combined company while Jean-François Chalifoux will become CEO. Both companies are backed by Caisse de dépôt et placement du Québec. Fonds de solidarité FTQ is also a shareholder of SSQ.
QUEBEC CITY, Jan. 29, 2020 /CNW Telbec/ – La Capitale Insurance and Financial Services and SSQ Insurance are announcing today their decision to combine operations. The new entity will become an influential player and the biggest mutual insurance company in Canada. From day 1 it will have 4,700 employees and more than 3.5 million members and clients.
La Capitale and SSQ Insurance are two companies of similar size with complementary operations. La Capitale is a leader in property and casualty insurance while SSQ Insurance is well known for group insurance. The merger of equals, which brings the two companies together as equals, will be a driving force for each organization. The new company will be poised for faster growth and improved competitiveness at a time when the insurance industry is evolving rapidly.
Both entities are seizing a unique opportunity to join forces and build a new company with nationwide reach and a head office that will remain in Quebec City for the long term. The company will build on a solid foundation of skilled employees, strong mutualist values, sound finances, and a broad range of expertise.
Combined assets under management for the new company will total more than $20 billion, and consolidated premiums will be worth $5 billion.
Stages of the merger
At this time no changes will be made to either company’s operations. There are still steps to complete before the merger of equals can be finalized, including approval from the regulatory authorities and the mutualist members at their respective meetings as well as amendments to each company’s private bills. Ideally, the merger of equals will be finalized quickly in the upcoming parliamentary session.
A process will be set up to decide on the name and image of the new company.
Once the new entity is in place, Jean St-Gelais is expected to serve as Chair of the Board of Directors and Jean-François Chalifoux as CEO. Jean St-Gelais is currently Chair of the Board and Chief Executive of La Capitale, while Jean-François Chalifoux is CEO of SSQ Insurance.
“We’re delighted to combine our strengths and work as a team to create the biggest insurance mutual in Canada. Together, we’ll be better able to meet current challenges of staying competitive and versatile, developing our workforce, and keeping up with technology. Both our companies are on solid financial ground. Together, we will be even stronger.”
CEO, SSQ Insurance
“In the rapidly changing world of insurance, we concluded that an alliance between La Capitale and SSQ Insurance is the best way forward for both our organizations. It’s a strategic positioning. We have a genuine desire to work together and create a major new Quebec insurance company with more power for faster growth. It’s a promising—and substantial—undertaking.”
– Jean St-Gelais
Chair of the Board of Directors and Chief Executive, La Capitale
About La Capitale
La Capitale Insurance and Financial Services, created in 1940, has a strong presence across Quebec and throughout Canada. With close to 2,700 employees and guided by the values of mutualism on which it was founded, La Capitale works with clients to build, protect, and manage what they consider critical to their financial security. The company offers insurance products and financial services to the general public as well as to Quebec public service employees. With assets of $7.4 billion, La Capitale features prominently among leading insurers in Canada.
About SSQ Insurance
Founded in 1944, SSQ Insurance is a mutualist company that puts community at the heart of insurance. With assets under management of $12 billion, SSQ Insurance is one of the largest companies in the industry. Working for a community of over three million customers, SSQ Insurance employs 2,000 people. The company is a leader in group insurance and sets itself apart through its expertise in individual life and health insurance, general insurance, and the investment sector.